Acquisition Finance up to 85% LTV with Senior, Mezzanine and Bridge Funding

Serious buyers rarely lose deals because they cannot find any lender. They lose deals because senior lenders stop at 55 to 70 percent of the purchase price, equity is finite, and the seller will not move on valuation or timing. The numbers almost work, but not quite, and the deal stalls.

Financely focuses on that gap. Through regulated partners, we structure and arrange acquisition finance packages that combine senior debt, mezzanine capital, and short tenor bridge facilities so that qualified buyers can reach total funding of up to roughly 80 to 85 percent loan to value or loan to cost on closing, where the transaction profile supports it.

Who This Acquisition Finance Offer Is For

This service is aimed at buyers who already have a live transaction and a clear need for structured funding, not at casual shoppers. Typical clients include:

• Independent sponsors and search funds with a signed LOI or purchase agreement and committed equity.
• Corporate acquirers buying bolt-on targets or carve outs that sit outside existing bank mandates.
• Management teams executing management buyouts or buy-ins, with vendor support and personal capital.
• Family offices and small private equity platforms closing two to six mid market deals per year.

All of these buyers face the same problem. Senior lenders will not fund the whole purchase price, and equity alone is not the answer if the buyer wants to preserve capital for follow on growth.

What We Arrange in the Capital Stack

Financely acts as advisor and arranger through regulated partners. We do not lend from our own balance sheet. Instead, we design and run a process around:

• Senior acquisition term loans and working capital lines from banks and specialist lenders.
• Mezzanine loans or preferred equity to sit between senior debt and common equity.
• Bridge to close facilities to cover timing gaps between completion and term take out.
• Where appropriate, structured vendor notes that slot cleanly into the intercreditor position.

The result is a capital structure where each piece has a defined role, pricing, security, and control profile rather than a loose mix of promises that never pass credit approval.

How an 85% LTV Acquisition Structure Can Work

Every transaction is different, and no leverage level is guaranteed. As a working example, consider a business being acquired for 20 million. A senior lender is prepared to fund 12 million, which is 60 percent of the purchase price. The sponsor group has 3 million of equity. That leaves a 5 million shortfall.

If the cash flows, sector, and sponsor quality support it, a mezzanine capital provider may be willing to fund the 5 million gap on subordinated terms. Combined, that produces a stack of 12 million senior, 5 million mezzanine, and 3 million equity. The buyer closes at 85 percent debt and 15 percent equity, subject to covenants and agreed pay down schedules. This kind of structure only works when there is enough cash generation to carry both layers of debt without starving the business.

Three Step Process from Enquiry to Closing

Step 1: Submit Your Deal and Core Documents

Buyers complete our online intake form and upload the key documents for the transaction. That typically includes the LOI or purchase agreement, management accounts, historical financials, a short business overview, equity commitment details, and any senior lender indications already obtained.

Step 2: Structuring, Modelling, and Underwriting

If the basic profile makes sense, we run cash flow analysis and set a proposed capital structure, including senior, mezzanine, and any bridge component. We then prepare lender grade materials and target a short list of credit funds, banks, and other capital providers that are active in comparable deals. The goal is to bring back real term sheets, not generic expressions of interest.

Step 3: Term Sheets, Documentation, and Closing

Once indicative terms are on the table, we help sponsors compare options, negotiate headline points, and coordinate with legal counsel and the seller’s advisers. Intercreditor mechanics, security packages, covenants, and closing conditions are tightened until the documents reflect what credit committees have approved. Funding then flows into the agreed structure on closing of the acquisition.

Documents You Should Have Ready

Buyers who move fastest through this process usually have most of the following in place before they contact us:

• Signed LOI, term sheet, or purchase agreement for the target.
• At least three years of historical financial statements and current management accounts.
• A basic financial model for the combined business, including debt service and downside cases.
• Evidence of equity commitments and any vendor support that has been agreed.
• Background on the sponsor team and their track record in similar deals or sectors.

Buyers who are still at the idea stage without documentation are usually better served by returning once they have a concrete opportunity under contract or at advanced negotiation.

Fees and Engagement Terms

Financely charges clear, published fees for acquisition finance mandates:

• Structuring fee: USD 5,000, payable once we accept the mandate and begin detailed work on structure and modelling.
• Underwriting and distribution fee: USD 15,000, covering preparation of materials, lender outreach, and process management through regulated partners.
• Success fee: 2.5 percent of the gross debt and mezzanine proceeds raised at closing, payable from transaction funds.

Third party costs, including legal, tax, due diligence, valuations, and any required reports, are for the account of the client or the borrowing group. All mandates are on a best efforts basis and subject to a separate engagement letter that sets out the commercial terms in full.

When This Offer Is Not Suitable

Not every acquisition should carry an 80 to 85 percent leverage profile. Targets with volatile earnings, heavy customer concentration, weak cash conversion, or unresolved legal or tax issues are often poor candidates. Structures that try to remove sponsor equity entirely by stacking vendor financing and funded equity on top of multiple debt layers are also rarely bankable.

In those situations, the honest answer is that the transaction needs more equity, a lower price, or a different structure rather than more debt. Our role is to make that clear early, not to dress up numbers for the sake of a fee.

Acquisition Finance FAQ

Do you lend your own funds for acquisition finance?

No. Financely does not lend from its own balance sheet. We act as advisor and arranger through regulated partners. Funding is provided by third party lenders and credit investors, subject to their underwriting and approvals.

Can you arrange 100 percent financing for an acquisition?

Genuine 100 percent financing is extremely rare in professional markets. Most serious lenders expect sponsors to contribute meaningful cash equity. Where sponsors are unwilling to do that, the probability of a successful closing falls sharply.

Is 85 percent LTV guaranteed?

No leverage level is guaranteed. The final structure depends on the strength of the target’s cash flows, the sector, the sponsor profile, and real time appetite from lenders. Some deals may support lower leverage, others may support more, within prudent limits.

How long does it take to close once we submit our deal?

Timelines vary by transaction. As a guide, prepared buyers with complete data can often move from initial review to indicative terms in a matter of weeks, then into legal work and closing. Buyers with incomplete information or moving targets on structure will face delays.

Which regions do you cover?

We focus on buyers and targets in North America, Europe, the Middle East, and selected Asian markets, working with capital providers that are active across these regions. If a transaction falls outside those footprints, we assess feasibility case by case.

Disclaimer: This page is for general information only and does not constitute advice, an offer, or a solicitation to buy or sell any financial product. References to leverage levels, lenders, and structures are high level and may not reflect the details of your situation. Financely acts as advisor and arranger through regulated partners and is not a bank or direct lender. Any facility or investment is subject to underwriting, KYC, AML, sanctions screening, legal review, perfected security, and approvals by relevant stakeholders. Professional and corporate audience only.